In a continued challenging environment, PE firms like KKR and others are looking to co-investment opportunities to drive value, deepen engagement and boost returns. While the idea of employee equity dates back many years, and research has consistently shown that satisfaction, retention and overall productivity are higher at employee-owned companies, the trend is fairly new in private equity.
Companies where at least 30% of the shares are owned by a broad-based group of employees, where all employees have access to ownership, and where the concentration of ownership is limited are more productive, grow faster, and are less likely to go out of business than their counterparts
— Harvard Business Review
The benefits associated with this model can certainly be leveraged to drive private equity’s mandate to generate maximum returns in a short period of time. Read below to gain insights on how PE firms are navigating and slowly adopting a social-driven equity model that may become an industry best practice.
Ownership Works: Paving the Way for PE Adoption
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